A Bright Outlook

Bolstered by the increased public awareness of healthcare, expanding government activity-particularly in the vaccine sector-and rapid actions taken by bio/pharma companies in reaction to the pandemic, the pharma industry is expected to experience continued growth in 2021. "The industry will continue to benefit from favourable demographic and lifestyle factors, innovations, and a diminishing threat from expiring patents in addition to the shot in the arm for the whole sector from the COVID-19 pandemic, whose impact goes beyond the vaccines," said Olaf Tblke, head of corporate ratings at Scope and lead healthcare-sector analyst, in a press release (1). According to recent insight from McKinsey, M&A is a critical aspect to a pharmaceutical company's recovery within the new normal (3).

Looking Ahead to Factors Shaping Market Activity

According to EY's 23rd edition of its Global Capital Confidence Barometer, 89% of life sciences executives saw a drop in profits in 2020, with two-thirds saying they cancelled or failed to complete a planned acquisition (1). According to PwC, biotech acquisition activity in the US $2-$10 billion (€1.7-€8.5 billion) range is accelerating, and funding will continue to trend as well, with companies looking for strategic deal making and partnership opportunities (6). According to the government's impact assessment, up to 1800 transactions could be notified each year (11). [...]any transactions since 12 November 2020 could be eligible to be called for review retrospectively, so there is the possibility that a deal that has already been completed may be subject to intervention (11).

Close the deal: Mechanisms for the payment of the purchase price in share purchase and sale agreements

The past events that have shaped our world, such as the COVID-19 Pandemic and the different political outcomes, entailed a scenario of major economic uncertainty in the global market that remains, particularly, in our country. Admittedly, mergers and acquisitions of companies (M&A) in Peru have also been heavily affected. However, it is the market agents' duty to find new strategies to mitigate the economic uncertainty by generating incentives through legal and financial security to the foreign and national investors. Consequently, in this article, the authors have identified the pricing mechanism, employed in Shares Purchase Agreements, as a key element in the recovery and boosting of M&A deals in the Peruvian market driven by uncertainty. Thus, the authors present the pricing mechanisms that have been traditionally used in Shares Purchase Agreements but also introduce the new trends in global pricing mechanisms that have come to stay and fit. © 2022, Pontificia Universidad Catolica del Peru. All rights reserved.

M&A activity during the COVID-19 pandemic

We investigate whether the COVID-19 pandemic initiated merger waves at the aggregate and industry levels. The COVID-19 pandemic coincides with economic shocks, wide adoption of new technologies, and volatility in stock and energy markets, all potential triggers of restructuring activity. Our sample covers 104,464 acquisition deals of US targets from 2012 to 2022. We identify 37 industry-level merger waves. Twenty-three merger waves start during the COVID-19 pandemic. Eighty percent of the deals during the pandemic were part of an industry merger wave. This concentration of industry waves drove an aggregate merger wave starting on April 2020.

The Bank of Japan's exchange traded fund purchases: a help or hindrance to market efficiency?

We examine the impact of the Bank of Japan's exchange traded fund (ETF) purchases on two aspects of market efficiency—long-range dependence and price delay—of the TOPIX and Nikkei 225 indices. An increase in ETF purchases results in lower long-range dependence for both indices while the impact on the price delay varies according to index and measure. A sub-period analysis shows that the impact on market efficiency varies over time, with the dominant pattern being a delayed harmful effect, followed by a positive impact and thereafter a negative effect. The implications of these findings are discussed.

Dealing a Blow to Biopharma

COVlD-19's impact on the global economy is dealing a blow to merger and acquisition activity in the biopharma industry. Compared with last year, which was very strong, merger and acquisition deal activity in the global pharma and life sciences sector has plummeted. According to data from PricewaterhouseCoopers (PwC), pharma deal values have dropped by approximately 56% in the first half of 2020 compared with 2019, and in the biotech sector of pharma the drop is even more pronounced at 74% (1). Merger and acquisition activity is anticipated to pick up in the second half of the year so that limited resources can be maximized (1).

Mergers and acquisitions: does performance depend on managerial ability?

Companies in difficult financial situations may seek to survive through mergers and acquisitions. Managers must be able to use company resources efficiently to maintain and improve competitiveness and sustainable advantages. Managers' ability to make strategic decisions may determine whether a merger and acquisition is successful. This study aims to reveal the role of the acquirer's managerial ability in mergers and acquisitions based on short- and long-term performance as well as the type of M&A. Two metrics are used to assess short- and long-term performance: the market-to-book ratio (MTBR) as an indicator of operating performance and the buy-and-hold abnormal return (BHAR) as an indicator of stock return performance. The research sample consists of 153 M&A cases conducted by companies registered with the Business Competition Supervisory Commission in Indonesia between 2010 and 2017, and the performance till 2020. We used regression and difference analysis to analyze the data. We find that managerial ability has a positive impact on MTBR operating and BHAR stock performance. This result confirms that the higher ability of the acquirer's manager will ensure a successful M&A in the long run. Investors and potential investors might consider managerial ability in choosing investments in companies after an M&A. This study contributes to the M&A literature by examining the role of MA in the short- and long-term performance of acquiring firms following M&As in Indonesia.

Islamic Bank Merger and Economic Crisis: Event Study Analysis: Acces la Success

This event study examines the stock price reaction to the merger announcement of three major Islamic banks in Indonesia, namely BNIS, BRIS, and BSM to become Indonesia Islamic Bank (ticker code BRIS). This study analyzes whether there is an abnormal return around the merger announcement on 14 days window period. Using a daily stock price of BRIS, market index, and trading volume we calculated abnormal return and risk using market model Sharpe 's single index model. Analysis of the 14 days window period found that there is an insignificant abnormal return before and after the Islamic banking merger and Indonesia Stock Exchange has been categorized as weak-form efficiency. The results of statistical tests reveal that stock returns and trading volume react positively after the merger announcement and are significant at 5% alpha.

Institutional Differences and the Choice of Outward Foreign Direct Investment Mode under the "Belt and Road” Initiative: Experience Analysis Based on China's Manufacturing Enterprises

Based on 1692 outward foreign direct investment (OFDI) events of 735 A-share listed companies in China's manufacturing industry from 2010 to 2019, this paper empirically examines the effect of investment motivation and the impact of institutional differences between China and the host country on the choice of OFDI entry mode;the paper also investigates the moderating effect of the "Belt and Road” Initiative (BRI) on Chinese manufacturing enterprises (CMEs) through use of the logit model. The empirical results show that, with greater institutional differences, CMEs become more inclined to choose cross-border mergers and acquisitions (M&A). Furthermore, a positive moderating effect of resource-seeking motivation on the choice of M&A OFDI by CMEs is observed. The signing of the "Belt and Road” cooperation document positively moderates institutional differences in promoting CMEs—especially state-owned CMEs—to choose the M&A mode. The "Belt and Road” Initiative provides an efficient supply system for OFDI by CMEs. This study enriches and extends existing institutional theories and provides suggestions for the promotion of the geopolitical pattern and international cooperation regarding the "Belt and Road” Initiative.

Does Higher Education Provide the Necessary Skills and Competencies to Succeed in the Job Market and Life?

There is a crisis in higher education. One troublesome issue is the sharp drop in higher education enrollments as well as the decline in the number of colleges in the United States. There is evidence that some college degrees are not worth the time and the money, and students would have earned more had they joined the workforce immediately after graduating high school. The authors discuss some of the problems and posit that some higher education institutions in the United States have done a poor job of teaching crucial skills, including critical thinking, ethical thinking, collaboration skills, and character development. The most vital competency of all might be inculcating in students a passion for lifelong learning, which is necessary to develop the ability to adapt swiftly to changing business conditions. Without these skills, it should be no surprise that there has been a disconnect between higher education and employability.

Risk and synergy of multinational enterprise mergers and acquisitions under the background of the COVID-19 pandemic

This study includes economic policy uncertainty measures and the magnitude and frequency of Asia pacific multinational business Mergers and acquisitions in 11 countries from 2009 to 2019 to evaluate the impact of uncertainty in economic policies (E.P.U) of global organizations mergers and acquisitions (M&A). To demonstrate that uncertainty in the home nation's economic policy significantly restricts multinational enterprise Mergers and acquisitions, uncertainty in the nation's economic policy significantly enhances Mergers and acquisitions, and that when the economy is in a pro-cyclical phase, these effects are reduced. Furthermore, the economic crisis has different effects of the country's uncertain economic policies on worldwide firm M&As. There is a significant negative correlation between the country's economic policy uncertainty and multinational firm Merger and acquisitions. Third, multinational firm Mergers and acquisitions are significantly impacted by economic policy uncertainties in the ASEAN (Association of Southeast Asian Nations) but not much in emerging countries. The size of M&A is considerably positively connected with foreign market expansion and variations in uncertainties.

CONSEQUENCES OF INTEGRATION PROCESSES FOR BUSINESS CONTINUITY MANAGEMENT

The modern business environment in which the world economy operates brings increasing unpredictability, which makes it difficult to plan and implement business continuity management. Recent examples are the emergence and spread of the corona virus and the war in Ukraine. Market-oriented economies are characterized by a reduction in the life cycle of companies and competition in saturated industrial sectors. Integration processes, takeovers and mergers, represent one of the ways of implementing development strategies of organizations and most often take place in waves and in crisis periods due to economic shocks and the influence of internal and external factors on the organization. Mentioned strategy is used by companies in order to acquire the necessary capital and resources in an effort to establish their position on the market more quickly and efficiently and to carry out activities of greater volume and income for the purpose of survival and faster progress. Due to the trends of M&A and the growing inconsistency and uncertainty in business, the aim of this paper is to highlight the consequences that M&A brings when it comes to managing the business continuity of a "newly integrated" organization. The impact on employees, business processes and general functioning and management of business continuity during and especially after integration will be observed. In order to fulfill the objective of the paper, the empirical part of the paper uses the Delphi method, in which the source of data is based on statistical collection and then the interpretation of the answers to the set questionnaire from a number of experts in the field of business continuity management, the banking sector, auditing and several business units that have recently passed M&A activities in order to consolidate attitudes about the consequences that integration processes bring for business continuity management and the organization as a whole. The paper will analyze the consequences of mergers and acquisitions for the management of business continuity, identify its advantages and disadvantages, and present recommendations for future such processes in the concluding remarks.

Financial Reportings and Analysis Practices in Tata Steel and Corus Acquisition: Their Association with Growth Rate and Financial Performance

This research article examined the financial reporting and analysis practices in Tata steel and Corus acquisition: Their association with growth rate and financial performance. This article analyzes the reasons and the effect of the Acquisition of Corus by paying 12.33 billion dollars to buy which is one of the biggest acquisitions by an Indian Company at the cross border. This paper also emphasizes this acquisition led to global growth in Steel Industry. The sample size of this research consists of Tata Steel and Corus Company which underwent acquisitions during 2007–08. This paper also emphasizes the significance of developing skills in analyzing and interpreting financial statements to maintain financial position and progress. To understand the distinguishing characteristics, problems and needs of the organization's growth performance, the published audited report from 2002–2022 was studied and interpreted. To measure the significance of the organization's performance the author adopted comparative, ratio analysis and other statistical tools were adopted. The study shows that there is important growth in income and financial position of companies after the merger, the growth can result in financial stresses and excessive use of debts as such cash flow difficulties. But the coronavirus (Lockdown) the company faced a downfall in their profits. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

The effects of monetary policy response to the Covid-19 crisis on dynamic connectedness across financial markets in Central and Eastern Europe

This study investigates the effects of monetary policy interventions in Central and Eastern European (CEE) economies on shifts in financial market linkages during the Covid-19-induced crisis. We explore the market reaction to both standard and non-standard (e.g., quantitative easing) monetary policy announcements by central banks in Czechia, Hungary, Poland, and Romania, and analyse the way they affected sovereign bond and stock market linkages. The analysis is further extended to include international spill-over effects. Research Design & Methods: We first quantify a set of time-varying asset correlations using asymmetric generalised DCC-GARCH models and daily data on financial asset returns. Going beyond the domestic stock-bond interdependencies, we explore cross-border connectedness between CEE economies, Germany, and the US. Next, we investigate the effects of detailed central bank announcements, as they unfolded during the Covid-19 crisis.

Does bank affiliation affect firm capital structure? Evidence from a financial crisis

PurposeThis study aims to assess the determinants of corporate debt with a particular focus on bank-affiliated and non-bank-affiliated firms during the global financial crisis.Design/methodology/approachThe authors analyse the data of 395 listed manufacturing firms from Pakistan with 2,370 firm-year observations. The sample is divided into subsamples, namely bank-affiliated, non-bank-affiliated and stand-alone firms. Fixed and panel effect regression models are applied to determine the during, pre-crisis and post-crisis effects on corporate capital structure.FindingsThe robust results of the study reveal that non-bank-affiliated firms have different leverage determinant behaviours with a greater reliance on size, tangibility and profitability. However, bank-affiliated firms seemed to show greater immunity from a crisis compared to other firms. Simultaneously, the stand-alone firms remained at a disadvantage subject to internal financial ties of group-affiliated firms and form a base of market imperfection.Practical implicationsThis study's findings imply that financial managers should contain better ties with financial institutions to enhance financial immunity in worse time of financial crisis or COVID-19 global calamity. On the regulation front, these findings call for critical policy regulations to govern the internal ties with financial institutions to create a level playing field for the corporate sector.Originality/valueTo the best of the authors' knowledge, this study is the first to investigate determinants of corporate debt with a particular focus on bank-affiliated and non-bank-affiliated firms. This work is also novel to explore corporate debt of bank-affiliated and non-bank-affiliated firms during the financial crisis.

Mind the Gap: The Illusion of Skill Acquisition in Computational Thinking

With the advent of online educational platforms and the advances in pedagogical technologies, self-directed learning has emerged as one of the most popular modes of learning. Distance education - -elevated by the COVID-19 pandemic - -involves methods of instruction through a variety of remote activities which often rely on educational videos for mastery. In the absence of direct student engagement, the asynchronous nature of remote activities may deteriorate the quality of education for learners. Students often have an illusion of skill acquisition after watching videos, which results in overestimation of abilities and skills. We focus on the efficacy of skill acquisition through interactive technologies and assess their impact on computational thinking in comparison with delivery through other traditional media (e.g. videos and texts). In particular, we investigate the relationship between actual learning, perception of learning, and learners' confidence in adult learners. Our results reveal intriguing observations about the role of interactivity and visualization and their implications on the pedagogical design for self-directed learning modules. © 2023 ACM.